Interim
Joint Committee on Agriculture

Minutes
of the<MeetNo1>1st Meeting

of
the 2013 Interim

<MeetMDY1>June 12, 2013

Call to Order and Roll Call

The<MeetNo2>1st meeting of the Interim Joint
Committee on Agriculture was held on<Day>Wednesday,<MeetMDY2>June 12, 2013, at<MeetTime>10:00 AM, at Godís Pantry
Food Bank, Lexington, Kentucky.<Room>Representative Tom McKee, Chair, called the
meeting to order, and the secretary called the roll.

John McCauley, FSA, discussed disaster assistance programs
for the farms that suffered severe tornado damage. Mr. McCauley said that the 2013
Farm Bill, which has yet to be approved by Congress, contains the funds that
are necessary for the disaster assistance programs.

Opening Remarks:

Commissioner Beth Mills, Social Services, Lexington Fayette
Urban County Government welcomed the members to the distribution center. She
explained that Godís Pantry Food Bank is a national model, and that it plays a
vital role in providing quality food for families.

Update on Industrial Hemp:

Representative McKee, Representative Mills, and
Representative Stone reported on their respective meetings with officials in
Canada and Washington, D.C. regarding industrial hemp. Representative McKee
said that Canada is building a plant for processing hemp that would cost
approximately $5 million and employ 30 people. The plant is owned by China. Senator
Hornback said that he met with officials in Washington to get an amendment to
the Farm Bill that would move the legalization of hemp and hemp regulations
from the Drug Enforcement Administration (DEA) to the Department of
Agriculture. Although the amendment failed, it created discussion. He said that
Governor Beshear sent a letter to the President and Kentuckyís congressional
delegation encouraging the United States Attorney General, the Office of
National Drug Control Policy, and the Secretary of the U.S. Department of
Agriculture to work with DEA to identify economic opportunities in the hemp
industry that do not negatively impact drug eradication efforts. Representative
Mills and Representative Stone agreed that the trip to Canada was informative
and positive and confirmed that industrial hemp should be grown.

Godís Pantry Food Bank: Statewide hunger issues; HB 141
as a part of SB 1, the results of a limited study on the usage of food banks;
commitment of the Agriculture Development Board to the Farms to Food Bank
organizations.

Marian Guinn, CEO, Kentucky Association of Food Banks, and
Tamara Sandberg, Kentucky Association of Food Banks, stated that the
distribution center consists of 46,000 square feet. The Kentucky Association of
Food Banks (KAFB) serves all counties in partnership with a network of over
1,000 local food pantries and shelters. KAFB feeds one in seven Kentuckians
each year. The federal Emergency Food Assistance Program and the Commodity
SupplementFood Program have sustained
significant funding cuts that resulted in terminating approximately 400 senior
citizens from the programs.

Ms. Guinn said that 17 percent of the stateís population, over
700,000 people, are food insecure. They do not know where their next meal will
come from. Since 1984, the need has been increasing, and the number of people
needing assistance has increased to 84 percent. Ms. Sandberg said that Food Bank
clients report having to choose between paying for food, utilities, gas for
their vehicle, or medicine. The Food Bank is building alliances to impact
hunger relief in Kentucky.

Ms. Sandberg also explained that the Farms to Food Banks
program increases the availability of fresh, healthy produce and helps farmers
reduce the amount of wasted food and recover losses. The goals of the Farms to
Food Banks program are to increase access to healthy food, pay fair prices to
farmers, and reduce the amount of wasted food. As a result of the passage of the
Farms to Food Banks legislation, approximately 2,148,975 pounds of food has
been distributed to 116 counties. The fiscal impact to producers resulted in an
average payment of $1,079. Starting in 2014, taxpayers will be given the option
through a tax check-off on their Kentucky state tax form to donate to the nonprofit
food banks. Also, taxpayers donating any edible agricultural products to
nonprofit food programs will receive a tax credit equaling 10 percent of the
value. The food banks would appreciate any General Assembly funding to support
needy families.

Mr. Glen Abney, a Bourbon County producer, has been selling
produce to the Food Bank for the past four years. The number one income for him
is tobacco, and the number two income is selling produce. Selling produce to
the Food Banks helps offset expenses and is a way to help needy Kentuckians who
need fresh produce in their diet.

Dr. Timothy Woods, University of Kentucky Food Systems
Innovation Center, Department of Agriculture Economics, explained the impact of
the Kentucky Department of Agriculture Specialty Crop Produce Sourcing Project.
The objective of the evaluation was to determine the impact of the program for
food bank clients. Surveys were distributed to three food banks supporting nine
food pantries. A total of 217 usable surveys were collected from different
individuals. The vast majority of responses came from persons who were
primarily responsible for grocery shopping and preparing meals at home. The
average client prepared 13.2 meals at home per week, which is equivalent to
about 52 meals per month. Based on a 2011 Kentucky Food Consumer Survey, only
11 meals per month were prepared at home by the average Kentucky food consumer.
He said that 88 percent of the clients surveyed had intentions of using fresh
produce in 2012 as compared to 2011. The biggest barrier for purchasing fresh
produce was the price. Other barriers included home storage, bulky transport,
and no access to stores that that sell produce.

The survey found that there was a strong interest in seeing
more fresh produce available through food pantries. Dr. Woods said that there
was strong evidence of expanded awareness and use of fresh produce among food
bank clients. Interest was also strong in seeing the program extended in both
volume and the variety of items. The role of the food bank was helping
consumers lower cost barriers for produce consumption.

In response to questions from Representative Bechler and
Senator Stein, Mr. Woods said that only adults were considered as consumers. The
serving size of a meal portion was smaller than recommended by the United
States Department of Agriculture.

Mr. Roger Thomas, Governorís Office of Agricultural Policy, described
the Agricultural Development Boardsí state and county fund grants to the food
bank effort, beginning in 2009 and extending to this year. The Board has approved
up to $75,000 with matching county funds so far in 2013.

In response to Representative Westrom, Ms. Sandberg said
that the guideline for obtaining food from the Food Pantry was proof of
residence, but if a client needed food, the Food Pantry would find a way to
provide it.

Representative Graham said that he strongly encouraged the
General Assembly to work across party lines to serve the needs of approximately
800,000 Kentuckians.